Why are some companies more successful than others? An exploration into organizational culture and dynamic capabilities

Why are some companies more successful than others? This thesis approaches the question by enlisting theoretical frameworks that explain the performance with internal factors, deriving from the resource-based view, namely the dynamic capabilities approach. To deepen the understanding of the drivers and barriers towards developing these higher order routines aiming at improving the operational level routines, this thesis explores the organisational culture and identity research for the microfoundational antecedents that might shed light on the formation of the dynamic capabilities. The dynamic capabilities framework in this thesis strives to take the theoretical concept closer to practical applicability. This is achieved through creation of a dynamic capabilities matrix, consisting of four dimensions often encountered in dynamic capabilities literature. The quadrants are formed along internal-external and resources-abilities axes, and consist of Sensing, Learning, Reconfiguration and Partnering facets. A key element of this thesis is the reality continuum, which illustrates the different levels of reality inherent in any entity of human individuals. The theoretical framework constructed in the thesis suggests a link between the collective but constructivist understanding of the organisation and both the operational and higher level routines, evident in the more positivist realm. The findings from three different case organisations suggest that the constructivist assumptions inherent to an organisation function as a generative base for both drivers and barriers towards developing dynamic capabilities. From each organisation one core assumption is scrutinized to identify its connections to the four dimensions of the dynamic capabilities. These connections take the form of drivers or barriers – or have the possibility to develop into one or the other. The main contribution of this thesis is to show that one key for an organisation to perform well in a turbulent setting, is to understand the different levels of realities inherent in any group of people. Recognising the intangible levels gives an advantage in the tangible ones.